UK motor insurance: personal injury drives up costs

While there are numerous drivers behind claims cost inflation in the motor market, the legal expenses involved in personal injury cases are by far the biggest determinant. The cost of paying defendant legal expenses in road traffic accidents where the value of the claim exceeds GBP10,000 is seeing strong inflation due to the fact that average damage awards are increasing. On top of that, the long-term increase in the price of spare parts, windscreens, garage rates and the increasing number of cars on the road serve to make it more expensive to settle motor claims.

Source: Datamonitor, "Claims Management in UK General Insurance 2005" (DMFS1795)

Source: Datamonitor, "Claims Management in UK General Insurance 2005" (DMFS1795)